18th June 2009 Printer Friendly Version

Hi John,

In my last newsletter I discussed the affect of low interest rates on investment decisions.

I said “Low interest rates are good for borrowers but not so good for investors looking for income. Every time interest rates are low, investors are lured into investing into things they don’t fully understand”. To read this click here.

Well interestingly enough the results of the recent survey about my newsletters have indicated readers would be interested in looking at some of the investment alternatives available. While we are not investment advisers, I’d be interested in finding out the types of investment opportunities you are looking for.

As arrangers of debt and equity for property and business, we often see opportunities for third parties to participate. The options are so varied it’s impossible to list them all here – and in any event they are subject to negotiation and no two examples are the same.

With the current state of the property market there is the opportunity to join in the purchase, or completion of, sound properties and projects that have been stalled by the credit crunch.

The details of many of these are subject to signing a confidentiality agreement and some are only available to those who qualify as an ”eligible person” To see the definition of an eligible person click here.

Specific examples have included:

• Investment in a cropping business using land leased from sheep farmers to grow grain to contract (projected 36% return).
• Taking a debt equity position in a parking project at Auckland Airport (12% interest rate with a projected IRR of 18.25%).